JOHANNESBURG, South Africa – The business world is sensitive to political uncertainty, unemployment, and corruption. These three elements certainly do affect economic, social and political stability in any country.
Over the weekend, the election of Cyril Ramaphosa as the new president of the African Nation Congress (ANC), the ruling and South Africa’s popular political party has skyrocketed the country’s market.
Ramaphosa, currently the country’s deputy president, is potentially assured of being South Africa’s next leader after the 2019 presidential election, or when incumbent president Jacob Zuma steps down before the election.
Immediately following the ANC’s election and Ramaphosa’s ascendancy to the party’s throne, South Africa’s benchmark stocks index led its biggest rally since March.
Cyril Ramaphosa is considered as a business and investor-friendly leader whose leadership of the ruling party appears to gradually remove a menace that had weighed upon market response.
The Ramaphosa’s ANC ascendancy saw the following market impact. The FTSE/JSE Africa All Share Index rose 1.6 percent.
Household goods shares, banks, insurers, retailers and other domestically absorbed business headed gains on the scale.
The FTSE/JSE Africa Banks Index jumped 7.2 percent, which is a remarkable record.
The FTSE/JSE Life Insurance Index scaled to the maximum level since August 2015.
The FTSE/JSE Africa General Retailers Index innovated and increased the most in two years.
Investment and business remain uncertain if this trend will continue after Ramaphosa assumed the South African presidency. For now, the news is good.